improving profile of pub estate with average EBITDAR in tenanted pubs up by +0.8% and in managed pubs up by +8.5%

Strong start to the new financial year for the 12 weeks to 17 September 2011

beer volume +6.9%

like-for-like managed sales +6.5%

continued improving trends within the tenanted estate

Since the year end, acquisition of two prestigious coastal hotels for £7.6m, adding 66 letting rooms.

Miles Templeman, Chairman, commented:"This is another strong performance from Shepherd Neame, as we have achieved record turnover and record beer volume. We have improved the offer in our pubs, enjoyed the benefits of recent capital investment in our estate, grown our beer sales and invested to develop our marketing capability. However, the general economic and industry outlook remains challenging with decline in consumer income and inflation in our cost base. We will continue to pursue our long-term strategy of investing fully in our brands and pubs so as to retain the strength and identity of the business. I have every confidence that we will continue to deliver value for shareholders with dividend growth and a strong balance sheet for future expansion."